Error left thousands of military retirees out of Retro Pay

Military update:
DFAS: Error left thousands of military retirees out of Retro Pay
By Tom Philpott, Special to Stars and Stripes
Pacific edition, Saturday, May 30, 2009
As many as 39,000 disabled military retirees have been left out of the VA Retro Pay program by mistake, say officials at the Defense Finance and Accounting Service who are calculating the amount of money owed.

This latest and perhaps most serious gaffe in the problem-plagued VA Retro Pay project was uncovered after DFAS received a rising number of complaints from retirees. None had been screened for retroactive payment, but follow-up calculations confirmed that each had been underpaid.

VA Retro payments have ranged from a few hundred dollars to many thousands, depending on individual circumstance. All recipients have served in the military for 20 or more years and all have disabilities that qualified them for one of two relatively new disabled retiree entitlements: Combat-Related Special Compensation, which began in 2003, or Concurrent Retirement and Disability Pay, which started in 2004.

The VA Retro Pay project began to identify retirees for lump-sum back payments in September 2006. The project became necessary because of difficulties in calculating initial payments to retirees under CRSC and CRDP, complex plans voted by Congress to begin to lift the ban on concurrent receipt of both military retirement and disability compensation. First up were to be full career retirees with combat-related injuries or severe disabilities.
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